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[ ] SUPPLEMENTAL INDENTURE
among
MEDIAONE GROUP FUNDING, INC.,
Issuer,
MEDIAONE GROUP, INC.
Guarantor
and
NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION
Trustee
Dated as of [ ], 199[ ]
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TABLE OF CONTENTS
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ARTICLE I
DEFINITIONS
SECTION 1.1 Definition of Terms . . . . . . . . . . . . . . . . . . . . . . 2
ARTICLE II
GENERAL TERMS AND CONDITIONS OF
THE NOTES
SECTION 2.1 Designation and Principal Amount. . . . . . . . . . . . . . . . 4
SECTION 2.2 Maturity. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
SECTION 2.3 Form and Payment. . . . . . . . . . . . . . . . . . . . . . . . 4
SECTION 2.4 Global Note . . . . . . . . . . . . . . . . . . . . . . . . . . 4
SECTION 2.5 Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ARTICLE III
REDEMPTION OF THE NOTES
SECTION 3.1 Special Event Redemption. . . . . . . . . . . . . . . . . . . . 6
SECTION 3.2 Optional Redemption by Company. . . . . . . . . . . . . . . . . 7
SECTION 3.3 No Sinking Fund . . . . . . . . . . . . . . . . . . . . . . . . 7
ARTICLE IV
EXTENSION OF INTEREST PAYMENT PERIOD
SECTION 4.1 Extension of Interest Payment Period. . . . . . . . . . . . . . 7
SECTION 4.2 Notice of Extension . . . . . . . . . . . . . . . . . . . . . . 8
ARTICLE V
EXPENSES AND GUARANTEE
SECTION 5.1 Payment of Expenses . . . . . . . . . . . . . . . . . . . . . . 9
SECTION 5.2 Guarantee of Payment of Expenses. . . . . . . . . . . . . . . . 9
ARTICLE VI
SUBORDINATION
SECTION 6.1 Agreement to Subordinate. . . . . . . . . . . . . . . . . . . . 9
SECTION 6.2 Default on Senior Indebtedness. . . . . . . . . . . . . . . . .10
SECTION 6.3 Liquidation: Dissolution; Bankruptcy. . . . . . . . . . . . . .11
SECTION 6.4 Subrogation . . . . . . . . . . . . . . . . . . . . . . . . . .12
SECTION 6.5 Trustee to Effectuate Subordination . . . . . . . . . . . . . .14
SECTION 6.6 Notice by the Company and the Guarantor . . . . . . . . . . . .14
SECTION 6.7 Rights of the Trustee; Holders of Senior Indebtedness . . . . .15
SECTION 6.8 Subordination May Not Be Impaired . . . . . . . . . . . . . . .15
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ARTICLE VII
COVENANTS
SECTION 7.1 Listing on Exchanges. . . . . . . . . . . . . . . . . . . . . .16
SECTION 7.2 Direct Action . . . . . . . . . . . . . . . . . . . . . . . . .16
ARTICLE VIII
FORM OF NOTE
SECTION 8.1 Form of Note. . . . . . . . . . . . . . . . . . . . . . . . . .16
ARTICLE IX
ORIGINAL ISSUE OF NOTES AND GUARANTEES
SECTION 9.1 Original Issue of Notes and Guarantees. . . . . . . . . . . . .26
ARTICLE X
MISCELLANEOUS
SECTION 10.1 Ratification of Indenture . . . . . . . . . . . . . . . . . . .26
SECTION 10.2 Trustee Not Responsible for Recitals. . . . . . . . . . . . . .27
SECTION 10.3 Governing Law . . . . . . . . . . . . . . . . . . . . . . . . .27
SECTION 10.4 Separability. . . . . . . . . . . . . . . . . . . . . . . . . .27
SECTION 10.5 Counterparts. . . . . . . . . . . . . . . . . . . . . . . . . .27
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[ ] SUPPLEMENTAL INDENTURE, dated as of [ ], 199[ ](the
"[ ] Supplemental Indenture"), among MediaOne Group Funding, Inc., a
Delaware corporation (the "Company"), MediaOne Group, Inc., a Delaware
corporation (the "Guarantor") and Norwest Bank Minnesota, National
Association, as trustee (the "Trustee") under the Indenture dated as of June
12, 1998 among the Company, the Guarantor and the Trustee (as so
supplemented, the "Indenture").
WHEREAS, the Company and the Guarantor executed and delivered the
Indenture to the Trustee to provide for the future issuance of the Company's
unsecured subordinated debt securities guaranteed by the Guarantor, to be
issued from time to time in one or more series as might be determined by the
Company under the Indenture, in an unlimited aggregate principal amount which
may be authenticated and delivered as provided in the Indenture;
WHEREAS, pursuant to the terms of the Indenture, the Company
desires to provide for the establishment of a new series of its Debt
Securities to be known as its [ ]% Subordinated Deferrable Interest Notes due
[ ], and the Guarantor desires to provide for the issuance of a Guarantee
of such Debt Securities (the "Note Guarantee" and, together with the Debt
Securities, the "Notes"), the form and substance of such Notes and the Note
Guarantee and the terms, provisions and conditions thereof to be set forth as
provided in the Indenture and this [ ] Supplemental Indenture;
WHEREAS, MediaOne Finance Trust [ ], a Delaware statutory business
trust (the "Trust"), has offered to the public $[ ]aggregate
liquidation amount of its [ ]% Preferred Securities (the "Preferred
Securities"), representing undivided beneficial interests in the assets of
the Trust and proposes to invest the proceeds from such offering, together
with the proceeds of the issuance and sale by the Trust to the Guarantor of
$[ ] aggregate liquidation amount of its Common Securities, in
$[ ] aggregate principal amount of the Notes; and
WHEREAS, the Company and the Guarantor have requested that the
Trustee execute and deliver this [ ] Supplemental Indenture, and all
requirements necessary to make this [ ] Supplemental Indenture a valid
instrument, in accordance with its terms, and to make the Notes, when
executed by the Company and authenticated and delivered by the Trustee, the
valid obligations of the Company and to make the Guarantee endorsed thereon
when executed by the Guarantor a valid obligation of the Guarantor, have been
performed, and the execution and delivery of this [ ] Supplemental
Indenture has been duly authorized in all respects:
NOW THEREFORE, in consideration of the purchase and acceptance of
the Notes by the holders thereof, and for the purpose of setting forth, as
provided in the Indenture, the form and substance of the Notes and the terms,
provisions and conditions thereof, the Company and the Guarantor covenant and
agree with the Trustee as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1 DEFINITION OF TERMS
Unless the context otherwise requires:
(a) a term defined in the Indenture has the same meaning when used
in this [ ] Supplemental Indenture;
(b) a term defined anywhere in this [ ] Supplemental
Indenture has the same meaning throughout;
(c) the singular includes the plural and vice versa;
(d) a reference to a Section or Article is to a Section or Article
of this [ ] Supplemental Indenture;
(e) headings are for convenience of reference only and do not
affect interpretation;
(f) the following terms have the meanings given to them in the
Declaration: (i) Clearing Agency; (ii) Delaware Trustee; (iii) Property
Trustee; (iv) Preferred Security Certificate; (v) Regular Trustees; and (vi)
Special Event; and
(g) the following terms have the meanings given to them in this
Section 1.1(g):
"Additional Interest" shall have the meaning set forth in Section
2.5.
"Declaration" means the Amended and Restated Declaration of Trust
of MediaOne Finance Trust [ ], a Delaware business trust, dated as of [ ]
, 199[ ].
"Dissolution Event" means that as a result of an election by the
Guarantor, the Trust is to be dissolved in accordance with the Declaration
and the Notes held by the Property Trustee are to be distributed to the
holders of the Trust Securities issued by the Trust pro rata in accordance
with the Declaration.
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"Maturity Date" means the date on which the Notes mature and on
which the principal shall be due and payable together with all accrued and
unpaid interest thereon including Additional Interest, if any.
"Optional Redemption Price" shall have the meaning set forth in
Section 3.2.
"Redemption Price" means either the Special Event Redemption Price
or the Optional Redemption Price, as the case may be.
"Senior Indebtedness" means with respect to the Company or
Guarantor, (i) the principal, premium, if any, and interest in respect of (A)
indebtedness of such obligor for money borrowed and (B) indebtedness
evidenced by securities, debentures, bonds or other similar instruments
issued by such obligor; (ii) all capital lease obligations of such obligor;
(iii) all obligations of such obligor issued or assumed as the deferred
purchase price of property, all conditional sale obligations of such obligor
and all obligations of such obligor under any title retention agreement (but
excluding trade accounts payable arising in the ordinary course of business);
(iv) all obligations of such obligor for the reimbursement on any letter of
credit, banker's acceptance, security purchase facility or similar credit
transaction; (v) all obligations of the type referred to in clauses (i)
through (iv) of other persons for the payment of which such obligor is
responsible or liable as obligor, guarantor or otherwise; and (vi) all
obligations of the type referred to in clauses (i) through (v) of other
persons secured by any lien on any property or asset of such obligor (whether
or not such obligation is assumed by such obligor), except for (1) any such
indebtedness that is by its terms subordinated to or pari passu with the
Notes, as the case may be, and (2) any indebtedness, including all other debt
securities and guarantees in respect of those debt securities, initially
issued to (y) any other MediaOne Trust or (z) any trusts, partnerships or any
other entities affiliated with the Guarantor which is a financing vehicle of
the Guarantor ("Financing Entity") in connection with an issuance by such
Financing Entity of preferred securities or other securities which are
similar to the Preferred Securities, including, without limitation, (i) the
9.30% Subordinated Deferrable Interest Notes due 2025 issued by the Company
to MediaOne Finance Trust I (the "9.30% Notes") and the guarantee by the
Guarantor of the 9.30% Notes (the "9.30% Notes Guarantee"), (ii) the 9.50%
Subordinated Deferrable Interest Notes due 2036 issued by the Company to
MediaOne Finance Trust II (the "9.50% Notes") and the guarantee by the
Guarantor of the 9.50% Notes (the "9.50% Notes Guarantee"), (iii) the 7.96%
Subordinated Deferrable Interest Notes due 2025 issued by the Company to
MediaOne Financing A (the "7.96% Notes") and the guarantee by the Guarantor
of the 7.96% Notes (the "7.96% Notes Guarantee") and (iv) the 8.25%
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Subordinated Deferrable Interest Notes due 2036 issued by the Company to
MediaOne Financing B (the "8.25% Notes") and the guarantee by the Guarantor
of the 8.25% Notes (the "8.25% Note Guarantee").
"Special Event Redemption Price" shall have the meaning set forth
in Section 3.1.
ARTICLE II
GENERAL TERMS AND CONDITIONS OF
THE NOTES
SECTION 2.1 DESIGNATION AND PRINCIPAL AMOUNT
There is hereby authorized:
(a) a series of Debt Securities designated the "[ ]% Subordinated
Deferrable Interest Notes due [ ]", limited in aggregate principal amount
to $[ ], which amount shall be as set forth in any written order
of the Company for the authentication and delivery of Notes pursuant to
Section 2.4 of the Indenture; and
(b) a Guarantee of such Debt Securities.
SECTION 2.2 MATURITY
The Maturity Date will be [ ].
SECTION 2.3 FORM AND PAYMENT
Except as provided in Section 2.4, the Notes shall be issued in
fully registered certificated form without interest coupons. Principal and
interest on the Notes issued in certificated form will be payable, the
transfer of such Notes will be registrable and such Notes will be
exchangeable for Notes bearing identical terms and provisions at the office
or agency of the Trustee; PROVIDED, HOWEVER, that payment of interest may be
made at the option of the Company by check mailed to the registered holder at
such address as shall appear in the Security Register. Notwithstanding the
foregoing, so long as the registered holder of any Notes is the Property
Trustee, the payment of the principal of and interest (including Additional
Interest, if any) on such Notes held by the Property Trustee will be made at
such place and to such account as may be designated by the Property Trustee.
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SECTION 2.4 GLOBAL NOTE
In connection with a Dissolution Event;
(a) the Notes in certificated form may be presented to the Trustee
by the Property Trustee in exchange for a Global Note in an aggregate
principal amount equal to all Outstanding Notes, to be registered in the name
of the Depository, or its nominee, and delivered by the Trustee to the
Depository for crediting to the accounts of its participants pursuant to the
instructions of the Regular Trustees. The Company upon any such presentation
shall execute a Global Note in such aggregate principal amount and deliver
the same to the Trustee for authentication and delivery in accordance with
the Indenture and this [ ] Supplemental Indenture. Payments on the Notes
issued as a Global Note will be made to the Depository; and
(b) if any Preferred Securities are held in non book-entry
certificated form, the Notes in certificated form may be presented to the
Trustee by the Property Trustee and any Preferred Security Certificate which
represents Preferred Securities other than Preferred Securities held by the
Clearing Agency or its nominee ("Non Book-Entry Preferred Securities") will
be deemed to represent beneficial interests in Notes presented to the Trustee
by the Property Trustee having an aggregate principal amount equal to the
aggregate liquidation amount of the Non Book-Entry Preferred Securities until
such Preferred Security Certificates are presented to the Security Registrar
for transfer or reissuance at which time such Preferred Security Certificates
will be cancelled and a Note registered in the name of the holder of the
Preferred Security Certificate or the transferee of the holder of such
Preferred Security Certificate as the case may be, with an aggregate
principal amount equal to the aggregate liquidation amount of the Preferred
Security Certificate cancelled will be executed by the Company and delivered
to the Trustee for authentication and delivery in accordance with the
Indenture and this [ ] Supplemental Indenture. On issue of such Notes,
Notes with an equivalent aggregate principal amount that were presented by
the Property Trustee to the Trustee will be deemed to have been cancelled.
SECTION 2.5 INTEREST
(a) Each Note will bear interest at the rate of [ ]% per annum
(the "Coupon Rate") from the original date of issuance until the principal
thereof becomes due and payable, and on any overdue principal and (to the
extent that payment of such interest is enforceable under applicable law) on
any overdue installment of interest at the Coupon Rate, payable (subject to
the provisions of Article Four) [ ] in arrears on [ ] of each
year (each, an "Interest Payment Date"), commencing on [ ], 199[ ], to
the person in whose name such Note or any
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predecessor Note is registered, at the close of business on the regular
record date for such interest installment, which, in respect of any Notes of
which the Property Trustee is the registered holder of or a Global Note,
shall be the close of business on the Business Day next preceding that
Interest Payment Date. Notwithstanding the foregoing sentence, if (i) the
Preferred Securities are no longer in book-entry only form or (ii) a
Dissolution Event has occurred and subsequent thereto the Notes are not
represented by a Global Note pursuant to the provisions of Section 2.11(c) of
the Indenture, the Company may select a regular record date for such interest
installment which shall be any date at least one Business Day before an
Interest Payment Date.
(b) The amount of interest payable for any period will be computed
on the basis of a 360-day year of twelve 30-day months. Except as provided
in the following sentence, the amount of interest payable for any period
shorter than a full [ ] period for which interest in computed, will be
computed on the basis of the actual number of days elapsed per 30-day month.
In the event that any date on which interest is payable on the Notes is not a
Business Day, then payment of interest payable on such date will be made on
the next succeeding day which is a Business Day (and without any interest or
other payment in respect of any such delay), except that, if such Business
Day is in the next succeeding calendar year, such payment shall be made on
the immediately preceding Business Day, in each case with the same force and
effect as if made on such date.
(c) If at any time while the Property Trustee is the holder of any
Notes, the Trust or the Property Trustee is required to pay any taxes, duties
assessments or governmental changes of whatever nature (other than
withholding taxes) imposed by the United States, or any other taxing
authority, then, in any case, the Company will pay as additional interest
("Additional Interest") on the Notes held by the Property Trustee, such
additional amounts as shall be required so that the net amounts received and
retained by the Trust and the Property Trustee after paying such taxes,
duties assessments or other governmental changes will be equal to the amounts
the Trust and the Property Trustee would have received had no such taxes,
duties, assessments or other government changes been imposed.
ARTICLE III
REDEMPTION OF THE NOTES
SECTION 3.1 SPECIAL EVENT REDEMPTION
If a Special Event has occurred and is continuing then,
notwithstanding Section 3.2 but subject to Section 3.3(c), the Company shall
have the right, upon not less than 30 days' nor
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more than 60 days' notice to the registered holders of the Notes to redeem
the Notes in whole or in part for cash within 90 days following the
occurrence of such Special Event at a redemption price (the "Special Event
Redemption Price") equal to [ ]% of the principal amount of such Notes to
be redeemed plus any accrued and unpaid interest thereon to the date of such
redemption.
SECTION 3.2 OPTIONAL REDEMPTION BY COMPANY.
(a) Subject to the provisions of Section 3.3(c) and to the
provisions of Article Three of the Indenture, the Company shall have the
right to redeem the Notes, in whole or in part, from time to time, on or
after [ ], at a redemption price (the "Optional Redemption Price")
equal to [ ]% of the principal amount per Note, plus, in each case,
accrued and unpaid interest thereon to the date of the redemption for the
Notes. Any redemption pursuant to this paragraph will be made upon not less
than 30 days nor more than 60 days notice before the redemption date to each
Holder of the Notes, at the Redemption Price.
SECTION 3.3 REDEMPTION PROCEDURES
(a)If the Notes are only partially redeemed pursuant to
Section 3.1 or Section 3.2, the Notes will be redeemed PRO RATA or by lot or
by any other method utilized by the Trustee; PROVIDED, that if at the time of
redemption the Notes are registered as Global Notes, the Depositary shall
determine, in accordance with its procedures, the principal amount of such
Notes held by each Holder of Notes to be redeemed.
(b)The Redemption Price shall be paid prior to 12:00 noon, New York
time, on the date of such redemption or at such earlier time as the Company
determines and specifies in the notice of redemption, provided that the
Company shall deposit with the Trustee an amount sufficient to pay the
Redemption Price by 11:00 a.m., New York time, on the date such Redemption
Price is to be paid.
(c)If a partial redemption of the Notes would result in the
delisting of the Preferred Securities issued by the Trust from any national
securities exchange or other organization on which the Preferred Securities
are then listed, the Company shall not be permitted to effect such partial
redemption and may only redeem the Notes in whole.
SECTION 3.4 NO SINKING FUND
The Notes are not entitled to the benefit of any sinking fund.
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ARTICLE IV
EXTENSION OF INTEREST PAYMENT PERIOD
SECTION 4.1 EXTENSION OF INTEREST PAYMENT PERIOD
The Company shall have the right, at any time during the term of
the Notes, from time to time to extend the interest payment period of such
Notes for up to [ ] consecutive [ ] periods (the "Extended
Interest Payment Period"). To the extent permitted by applicable law,
interest, the payment of which has been deferred because of the extension of
the interest payment period pursuant to this Section 4.1, will bear interest
thereon at the Coupon Rate for each [ ] period of the Extended
Interest Payment Period. At the end of the Extended Interest Payment Period
the Company shall pay all interest accrued and unpaid on the Notes including
any Additional Interest ("Deferred Interest") which shall be payable to the
holders of the Notes in whose names the Notes are registered in the Security
Register on the first record date after the end of the Extended Interest
Payment Period. Before the termination of any Extended Interest Payment
Period, the Company may further extend such period, PROVIDED that such period
together with all such further extensions thereof shall not exceed [ ]
consecutive [ ] periods. Upon the termination of any Extended
Interest Payment Period and upon the payment of all Deferred Interest then
due, the Company may select a new Extended Interest Payment Period, subject
to the foregoing requirements. No interest shall be due and payable during
an Extended Interest Payment Period, except at the end thereof.
SECTION 4.2 NOTICE OF EXTENSION
(a) If the Property Trustee is the only registered holder of the
Notes at the time the Company selects an Extended Interest Payment Period,
the Company shall give written notice to both the Regular Trustees and the
Property Trustee of its selection of such Extended Interest Payment Period
one Business Day before the earlier of (i) the next succeeding date on which
Distributions on the Trust Securities issued by the Trust are payable, or
(ii) the date the Trust is required to give notice of the record date or the
date such Distributions are payable to the New York Stock Exchange or other
applicable self-regulatory organization or to holders of the Preferred
Securities issued by the Trust, but in any event at least one Business Day
before such record date.
(b) If the Property Trustee is not the only holder of the Notes at
the time the Company selects an Extended Interest Payment Period, the Company
shall give the holders of the Notes written notice of its selection of such
Extended Interest Payment Period 10 Business Days before the earlier of (i)
the next
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succeeding Interest Payment Date, or (ii) the date the Company is required to
give notice of the record or payment date of such interest payment to the New
York Stock Exchange or other applicable self-regulatory organization or to
holders of the Notes.
(c) The [ ] period in which any notice is given
pursuant to paragraphs (a) or (b) of this Section 4.2 shall be counted as one
of the [ ] [ ] periods permitted in the maximum Extended Interest
Payment Period permitted under Section 4.1.
ARTICLE V
EXPENSES AND GUARANTEE
SECTION 5.1 PAYMENT OF EXPENSES
In connection with the offering, sale and issuance of the Notes to
the Property Trustee in connection with the sale of the Trust Securities by
the Trust, the Company shall:
(a) pay for all costs and expenses relating to the offering, sale
and issuance of the Note, including commissions to the underwriters payable
pursuant to the Underwriting Agreement and the Pricing Agreement and
compensation of the Trustee under the Indenture in accordance with the
provisions of Section 7.06 of the Indenture;
(b) pay for all costs and expenses of the Trust (including, but
not limited to, costs and expenses relating to the organization of the Trust,
the offering, sale and issuance of the Trust Securities (including
commissions to the underwriters in connection therewith), the fees and
expenses of the Property Trustee and the Delaware Trustee, the costs and
expenses relating to the operation of the Trust, including without
limitation, costs and expenses of accountants, attorneys, statistical or
bookkeeping services, expenses for printing and engraving and computing or
accounting equipment, paying agent(s), registrar(s), transfer agent(s),
duplicating, travel and telephone and other telecommunications expenses and
costs and expenses incurred in connection with the acquisition, financing,
and disposition of Trust assets); and
(c) pay any and all taxes (other than United States withholding
taxes attributable to the Trust or its assets) and all liabilities, costs and
expenses with respect to such taxes of the Trust.
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SECTION 5.2 GUARANTEE OF PAYMENT OF EXPENSES
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The Guarantor hereby fully and unconditionally guarantees the due
and punctual payment of all amounts that become due and payable by the
Company to any Person pursuant to Section 5.1.
ARTICLE VI
SUBORDINATION
SECTION 6.1 AGREEMENT TO SUBORDINATE
The Company and the Guarantor covenant and agree, and each holder
of Notes issued hereunder by holder's acceptance thereof likewise covenants
and agrees, that all Notes shall be issued subject to the provisions of this
Article Six; and each holder of a Note, whether upon original issue or upon
transfer or assignment thereof, accepts and agrees to be bound by such
provisions.
The payment by the Company of the principal of, premium, if any,
and interest on all Notes issued hereunder shall, to the extent and in the
manner hereinafter set forth, be subordinated and junior in right of payment
to the prior payment in full of all Senior Indebtedness of the Company,
whether outstanding at the date of this, Indenture or thereafter incurred.
The payment by the Guarantor of any obligation due under the Note Guarantee
issued hereunder shall, to the extent and in the manner hereinafter set
forth, be subordinated and junior in right of payment to the prior payment in
full of all Senior Indebtedness of the Guarantor, whether outstanding at the
date of this Indenture or thereafter incurred.
No provision of this Article Six shall prevent the occurrence of
any default or Event of Default hereunder.
SECTION 6.2 DEFAULT ON SENIOR INDEBTEDNESS
In the event and during the continuation of any default by the
Company or the Guarantor in the payment of principal, premium, interest or
any other payment due on any Senior Indebtedness of the Company or the
Guarantor, as the case may be, or in the event that the maturity of any
Senior Indebtedness of the Company or the Guarantor, as the case may be, has
been accelerated because of a default, then, in either case, no payment shall
be made by the Company with respect to the principal (including redemption
and sinking fund payments) of, or premium, if any, or interest on the Notes,
including payment with respect to any obligation due under the Guarantees.
In the event that, notwithstanding the foregoing, any payment
shall be received by the Trustee or any holder when such payment is
prohibited by the preceding paragraph of this Section
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6.2, such payment shall be held in trust for the benefit of, and shall be
paid over or delivered to, the holders of Senior Indebtedness or their
respective representatives, or to the trustee or trustees under any indenture
pursuant to which any of such Senior Indebtedness may have been issued, as
their respective interests may appear, but only to the extent that the
holders of the Senior Indebtedness (or their representative or
representatives or a trustee) notify the Trustee within 90 days of such
payment of the amounts then due and owing on the Senior Indebtedness and only
the amounts specified in such notice to the Trustee shall be paid to the
holders of Senior Indebtedness.
SECTION 6.3 LIQUIDATION: DISSOLUTION; BANKRUPTCY
Upon any payment by the Company or the Guarantor, or distribution
of assets of the Company or the Guarantor of any kind or character, whether
in cash, property or securities, to creditors upon any dissolution or
winding-up or liquidation or reorganization of the Company or the Guarantor,
whether voluntary or involuntary or in bankruptcy, insolvency, receivership
or other proceedings, all amounts due upon all Senior Indebtedness of the
Company or the Guarantor, as the case may be, shall first be paid in full, or
payment thereof provided for in money in accordance with its terms, before
any payment is made by the Company or the Guarantor, as the case may be, on
account of the principal (and premium, if any) or interest on the Notes; and
upon any such dissolution or winding-up or liquidation or reorganization any
payment by the Company or the Guarantor, or distribution of assets of the
Company or the Guarantor of any kind or character, whether in cash, property
or securities, to which the holders of the Note or the Trustee would be
entitled to receive from the Company or the Guarantor, as the case may be,
except for the provisions of this Article Six, shall be paid by the Company
or the Guarantor, as the case may be, or by any receiver, trustee in
bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the holders of the Notes or by the Trustee under this
Indenture if received by them or it, directly to the holders of Senior
Indebtedness of the Company or the Guarantor, as the case may be (pro rata to
such holders on the basis of the respective amounts of Senior Indebtedness
held by such holders, as calculated by the Company or the Guarantor, as the
case may be) or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing
such Senior Indebtedness may have been issued, as their respective interests
may appear, to the extent necessary to pay such Senior Indebtedness in full,
in money or money's worth, after giving effect to any concurrent payment or
distribution to or for the holders of such Senior Indebtedness, before any
payment or distribution is made to the holders of Notes or to the Trustee.
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In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company or the Guarantor of any kind or
character, whether in cash, property or securities, prohibited by the
foregoing, shall be received by the Trustee or the holders of the Notes
before all Senior Indebtedness of the Company or the Guarantor is paid in
full, or provision is made for such payment in money in accordance with its
terms, such payment or distribution shall be held in trust for the benefit of
and shall be paid over or delivered to the holders such Senior Indebtedness
or their representative or representatives, or to the trustee or trustees
under any indenture pursuant to which any instruments evidencing such Senior
Indebtedness may have been issued, and their respective interests may appear,
as calculated by the Company or the Guarantor, for application to the payment
of all Senior Indebtedness of the Company or the Guarantor, as the case may
be, remaining unpaid to the extent necessary to pay such Senior Indebtedness
in full in money in accordance with its terms, after giving effect to any
concurrent payment or distribution to or for the holders of such Senior
Indebtedness.
For purposes of this Article Six, the words "cash, property or
securities" shall not be deemed to include shares of stock of the Company or
the Guarantor as reorganized or readjusted, or securities of the Company or
the Guarantor or any other corporation provided for by a plan of
reorganization or readjustment, the payment of which is subordinated at least
to the extent provided in this Article Six with respect to the Notes to the
payment of all Senior Indebtedness of the Company or the Guarantor, as the
case may be, that may at the time be outstanding, PROVIDED that (i) such
Senior Indebtedness is assumed by the new corporation, if any, resulting from
any such reorganization or readjustment, and (ii) the rights of the holders
of such Senior Indebtedness are not, without the consent of such holders,
altered by such reorganization or readjustment. The consolidation of the
Company or the Guarantor with, or the merger of the Company or the Guarantor
into, another corporation or the liquidation or dissolution of the Company or
the Guarantor following the conveyance or transfer of its property as an
entirety, or substantially as an entirety, to another corporation upon the
terms and conditions provided for in Article Ten of the Indenture shall not
be deemed a dissolution, winding-up, liquidation or reorganization for the
purposes of this Section 6.3 if such other corporation shall, as a part of
such consolidation, merger, conveyance or transfer, comply with the
conditions stated in Article Ten of the Indenture. Nothing in Section 6.2 or
in this Section 6.3 shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 7.6 of the Indenture.
13
SECTION 6.4 SUBROGATION
Subject to the payment in full of all Senior Indebtedness of the
Company or the Guarantor, the rights of the holders of the Notes shall be
subrogated to the rights of the holders of such Senior Indebtedness to
receive payments or distributions of cash, property or securities of the
Company or the Guarantor, as the case may be, applicable to such Senior
Indebtedness until the principal of (and premium, if any) and interest on the
Notes shall be paid in full; and, for the purposes of such subrogation, no
payments or distributions to the holders for such Senior Indebtedness of any
cash, property or securities to which the holders of the Notes or the Trustee
would be entitled except for the provisions of this Article Six, and no
payment over pursuant to the provisions of this Article Six, to or for the
benefit of the holders of such Senior Indebtedness by holders of the Notes or
the Trustee, shall, as between (i) the Company, its creditors other than
holders of Senior Indebtedness of the Company, and the holders of the Notes
or (ii) the Guarantor, its creditors other than the holders of Senior
Indebtedness of the Guarantor, and the holders of the Notes, be deemed to be
a payment by the Company or the Guarantor, as the case may be, to or on
account of such Senior Indebtedness. It is understood that the provisions of
this Article Six are and are intended solely for the purposes of defining the
relative rights of the holders of the Notes, on the one hand, and the holders
of such Senior Indebtedness on the other hand.
Nothing contained in this Article Six or elsewhere in this
Indenture or in the Notes is intended to or shall impair, as between (i) the
Company, its creditors other than the holders of Senior Indebtedness of the
Company, and the holders of the Notes or (ii) the Guarantor, its creditors
other than the holders of Senior Indebtedness of the Guarantor, and the
holders of the Notes, the obligation of the Company or the Guarantor, as the
case may be, which is absolute and unconditional, to pay to the holders of
the Notes the principal of (and premium, if any) and interest on the Notes as
and when the same shall become due and payable in accordance with their
terms, or is intended to or shall affect the relative rights of the holders
of the Notes and creditors of the Company or the Guarantor, as the case may
be, other than the holders of Senior Indebtedness of the Company or the
Guarantor, as the case may be, nor shall anything herein or therein prevent
the Trustee or the holder of any Note from exercising all remedies otherwise
permitted by applicable law upon default under the Indenture, subject to the
rights, if any, under this Article Six of the holders of such Senior
Indebtedness in respect of cash, property or securities of the Company or the
Guarantor, as the case may be, received upon the exercise of any such remedy.
14
Upon any payment or distribution of assets of the Company or the
Guarantor referred to in this Article Six, the Trustee, subject to the
provisions of Section 7.1 of the Indenture, and the holders of the Notes,
shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction in which such dissolution, winding-up, liquidation or
reorganization proceedings are pending, or a certificate of the receiver,
trustee in bankruptcy, liquidation trustee, agent or other Person making such
payment or distribution, delivered to the Trustee or to the holders of the
Notes, for the purposes of ascertaining the Persons entitled to participate
in such distribution, the holders of Senior Indebtedness and other
indebtedness of the Company or the Guarantor, as the case may be, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article Six.
SECTION 6.5 TRUSTEE TO EFFECTUATE SUBORDINATION
Each holder of Notes by such holder's acceptance thereof authorizes
and directs the Trustee on such holder's behalf to take such action as may be
necessary or appropriate to effectuate the subordination provided in this
Article Six and appoints the Trustee such holder's attorney-in-fact for any
and all such purposes.
SECTION 6.6 NOTICE BY THE COMPANY AND THE GUARANTOR
The Company or the Guarantor shall give prompt written notice to a
Responsible Officer of the Trustee of any fact known to the Company or the
Guarantor that would prohibit the making of any payment of monies to or by
the Trustee in respect of the Notes pursuant to the provisions of this
Article Six. Notwithstanding the provisions of this Article Six or any other
provision of the Indenture and this [ ] Supplemental Indenture, the
Trustee shall not be charged with knowledge of the existence of any facts
that would prohibit the making of any payment of monies to or by the Trustee
in respect of the Notes pursuant to the provisions of this Article Six,
unless and until a Responsible Officer of the Trustee shall have received
written notice thereof at the Principal Office of the Trustee from the
Company or the Guarantor or a holder or holders of Senior Indebtedness or
from any trustee therefor; and before the receipt of any such written notice,
the Trustee, subject to the provisions of Section 7.1 of the Indenture, shall
be entitled in all respects to assume that no such facts exist; PROVIDED,
HOWEVER, that if the Trustee shall not have received the notice provided for
in this Section 6.6 at least two Business Days prior to the date upon which
by the terms hereof any money may become payable for any purpose (including,
without limitation, the payment of the principal of (or premium, if any) or
interest on any Note), then, anything herein contained to the contrary
15
notwithstanding, the Trustee shall have full power and authority to receive
such money and to apply the same to the purposes for which they were
received, and shall not be affected by any notice to the contrary that may be
received by it within two Business Days prior to such date.
The Trustee, subject to the provisions of Section 7.1 of the
Indenture, shall be entitled to rely on the delivery to it of a written
notice by a Person representing himself to be a holder of Senior Indebtedness
of the Company or the Guarantor, as the case may be (or a trustee on behalf
of such holder) to establish that such notice has been given by a holder of
such Senior Indebtedness or a trustee on behalf of any such holder or
holders. In the event that the Trustee determines in good faith that further
evidence is required with respect to the right of any Person as a holder of
such Senior Indebtedness to participate in any payment or distribution
pursuant to this Article Six, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of
such Senior Indebtedness held by such Person, the extent to which such Person
is entitled to participate in such payment or distribution and any other
facts pertinent to the rights of such Person under this Article Six, and if
such evidence is not furnished the Trustee may defer any payment to such
Person pending judicial determination as to the right of such Person to
receive such payment.
SECTION 6.7 RIGHTS OF THE TRUSTEE; HOLDERS OF SENIOR
INDEBTEDNESS
The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article Six, in respect of any Senior Indebtedness
at any time held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in this Indenture shall deprive the Trustee of any
of its rights as such holder.
With respect to the holders of Senior Indebtedness of the Company
or the Guarantor, the Trustee undertakes to perform or to observe only such
of its covenants and obligations as are specifically set forth in this
Article Six, and no implied covenants or obligations with respect to the
holders of such Senior Indebtedness shall be read into this Indenture against
the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to
the holders of such Senior Indebtedness and, subject to the provisions of
Section 7.1 of the Indenture, the Trustee shall not be liable to any holder
of such Senior Indebtedness if it shall pay over or deliver to holders of
Notes, the Company, the Guarantor or any other Person money or assets to
which any holder of such Senior Indebtedness shall be entitled by virtue of
this Article Six or otherwise.
16
SECTION 6.8 SUBORDINATION MAY NOT BE IMPAIRED
No right of any present or future holder of any Senior Indebtedness
of the Company or the Guarantor to enforce subordination as herein provided
shall at any time in any way be prejudiced or impaired by any act or failure
to act on the part of the Company or the Guarantor, as the case may be, or by
any act or failure to act, in good faith, by any such holder, or by any
noncompliance by the Company or the Guarantor, as the case may be, with the
terms, provisions and covenants of this Indenture, regardless of any
knowledge thereof that any such holder may have or otherwise be charged with.
Without in any way limiting the generality of the foregoing
paragraph, the holders of Senior Indebtedness of the Company or the Guarantor
may, at any time and from time to time, without the consent of or notice to
the Trustee or the holders of the Notes, without incurring responsibility to
the holders of the Notes and without impairing or releasing the subordination
provided in this Article Six or the obligations hereunder of the holders of
the Notes to the holders of such Senior Indebtedness, do any one or more of
the following: (i) change the manner, place or terms of payment or extend the
time of payment of, or renew or alter, such Senior Indebtedness, or otherwise
amend or supplement in any manner such Senior Indebtedness or any instrument
evidencing the same or any agreement under which such Senior Indebtedness is
outstanding; (ii) sell, exchange, release or otherwise deal with any property
pledged, mortgaged or otherwise securing such Senior Indebtedness; (iii)
release any Person liable in any manner for the collection of such Senior
Indebtedness; and (iv) exercise or refrain from exercising any rights against
the Company or the Guarantor, as the case may be, and any other Person.
ARTICLE VII
COVENANTS
SECTION 7.1 LISTING ON EXCHANGES
If the Notes are to be issued as a Global Note in connection with
the distribution of the Notes to the holders of the Preferred Securities
issued by the Trust upon a Dissolution Event, the Company will use its best
efforts to list such Notes on the New York Stock Exchange or on such other
exchange as the Preferred Securities are then listed.
SECTION 7.2 DIRECT ACTION
The Company, the Guarantor and the Trustee acknowledge that
pursuant to the Declaration, the holders of Preferred Securities are
entitled, in the circumstances and subject to the
17
limitations set forth therein, to commence a Direct Action (as defined
therein) with respect to any Event of Default under the Indenture, the Notes
and the Note Guarantee.
ARTICLE VIII
FORM OF NOTE
SECTION 8.1 FORM OF NOTE
The Notes, the Note Guarantee and the Trustee's Certificate of
Authentication to be endorsed thereon are to be substantially in the
following forms:
(FORM OF FACE OF NOTE)
[IF THE NOTE IS TO BE A GLOBAL NOTE, INSERT - This Note is a
Global Note within the meaning of the Indenture hereinafter referred to
and is registered in the name of a Depository or a nominee of a Depository.
This Note is exchangeable for Notes registered in the name of a person
other than the Depository or its nominee only in the limited circumstances
described in the Indenture, and no transfer of this Note (other than a
transfer of this Note as a whole by the Depository to a nominee of the
Depository or by a nominee of the Depository to the Depository or another
nominee of the Depository) may be registered except in limited circumstances.
Unless this Note is presented by an authorized representative of
The Depository Trust Company (55 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx) to the
issuer or its agent for registration of transfer, exchange or payment, and
any Note issued is registered in the name of Cede & Co. or such other name
as requested by an authorized representative of The Depository Trust
Company and any payment hereon is made to Cede & Co., ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL since
the registered owner hereof, Cede & Co., has an interest herein.]
No. $
------------------------------- ---------------------------
MediaOne Group Funding, Inc.
[ ]% SUBORDINATED DEFERRABLE INTEREST NOTE
DUE [ ]
MEDIAONE GROUP FUNDING, INC., a Delaware corporation (the
"Company", which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
_________ or registered assigns,
18
the principal sum of Dollars on [ ] and to pay interest on said principal
sum from [ ], 199[ ] or from the most recent interest payment date (each
such date, an "Interest Payment Date") to which interest has been paid or duly
provided for, [ ] (subject to deferral as set forth herein) in
arrears on [ ] of each year commencing [ ], 199[ ]
at the rate of [ ]% per annum until the principal hereof shall have
become due and payable, and on any overdue principal and premium, if any,
and (without duplication and to the extent that payment of such interest is
enforceable under applicable law) on any overdue installment of interest at
the same rate per annum. The amount of interest payable on any Interest
Payment Date shall be computed on the basis of a 360-day year of twelve
30-day months. In the event that any date on which interest is payable on
this Note is not a Business Day, then payment of interest payable on such
date will be made on the next succeeding day which is a Business Day (and
without any interest or other payment in respect of any such delay), except
that, if such Business Day is in the next succeeding calendar year, such
payment shall be made on the immediately preceding Business Day, in each
case with the same force and effect as if made on such date. The interest
installment so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the
person in whose name this Note (or one or more Predecessor Securities, as
defined in said Indenture) is registered at the close of business on the
regular record date for such interest installment [which shall be the close
of business on the business day next preceding such Interest Payment Date
unless otherwise provided for in the Indenture]. [IF PURSUANT TO THE
PROVISIONS OF SECTION 2.11(C) OF THE INDENTURE THE NOTES ARE NO LONGER
REPRESENTED BY A GLOBAL NOTE -- which shall be the close of business on the
____ business day next preceding such Interest Payment Date.] Any such
interest installment not punctually paid or duly provided for shall
forthwith cease to be payable to the registered holders on such regular
record date, and may be paid to the person in whose name this Note (or one or
more Predecessor Securities) is registered at the close of business on a
special record date to be fixed by the Trustee for the payment of such
defaulted interest, notice whereof shall be given to the registered holders
of this series of Notes not less than 10 days prior to such special record
date, or may be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Notes may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in the Indenture. The principal of (and premium, if any) and
the interest on this Note shall be payable at the office or agency of the
Trustee maintained for that purpose in any coin or currency of the United
States of America which at the time of payment is legal tender for payment of
public and private debts; PROVIDED, HOWEVER, that payment of interest may be
made at the option of the Company by check mailed to the registered
19
holder at such address as shall appear in the Security Register.
Notwithstanding the foregoing, so long as the Holder of this Note is the
Property Trustee, the payment of the principal of (and premium, if any) and
interest on this Note will be made at such place and to such account as may
be designated by the Property Trustee.
The indebtedness evidenced by this Note is, to the extent provided
in the Indenture, subordinate and junior in right of payment to the prior
payment in full of all Senior Indebtedness, and this Note is issued subject
to the provisions of the Indenture with respect thereto. Each Holder of this
Note, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his or her behalf to
take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination so provided and (c) appoints the Trustee his or
her attorney-in-fact for any and all such purposes. Each Holder hereof, by
his or her acceptance hereof, hereby waives all notice of the acceptance of
the subordination provisions contained herein and in the Indenture by each
holder of Senior Indebtedness, whether now outstanding or hereafter
incurred, and waives reliance by each such Holder upon said provisions.
This Note shall not be entitled to any benefit under the Indenture
hereinafter referred to, be valid or become obligatory for any purpose until
the Certificate of Authentication hereon shall have been signed by or on
behalf of the Trustee.
The provisions of this Note are continued on the reverse side
hereof and such continued provisions shall for all purposes have the same
effect as though fully set forth at this place.
20
IN WITNESS WHEREOF, the Company has caused this instrument to be
executed.
Dated ______________ ___, 199[ ]
MEDIAONE GROUP FUNDING, INC.
By
---------------------------------
Name:
Title:
SEAL
Attest:
By
---------------------------------
Name:
Title: Secretary
(FORM OF CERTIFICATE OF AUTHENTICATION)
CERTIFICATE OF AUTHENTICATION
This is one of the Notes of the series of Notes described in the
within-mentioned Indenture.
NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION, as Trustee
By
---------------------------------
Authorized Signatory
21
[FORM OF GUARANTEE]
FOR VALUE RECEIVED, MediaOne Group, Inc., a Delaware corporation
(the "Guarantor"), hereby unconditionally guarantees to the holder of the
Security upon which this Guarantee is endorsed the due and punctual payment
of the principal of, sinking fund payment, if any, premium, if any, or
interest on said Security, when and as the same shall become due and
payable, whether at maturity, upon redemption or otherwise, according to
the terms thereof and of the Indenture referred to therein.
The Guarantor agrees to determine, at least one Business Day
prior to the date upon which a payment of principal of, sinking fund
payment, if any, premium, if any, or interest on said Security is due and
payable, whether the Company has available the funds to make such payment
as the same shall become due and payable. In case of the failure of the
Company punctually to pay any such principal, sinking fund payment, if any,
premium, if any, or interest, the Guarantor hereby agrees to cause any such
payment to be made punctually when and as the same shall become due and
payable, whether at maturity, upon redemption, or otherwise, and as if such
payment were made by the Company.
The Guarantor hereby agrees that its obligations hereunder shall
be unconditional, irrevocable, and absolute, irrespective of the validity,
regularity, or enforceability of said Security of said Indenture, the
absence of any action to enforce the same, any waiver or consent by the
Holder of said Security with respect to any provisions thereof, the
recovery of any judgment against the Company or any action to enforce the
same, or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor. The Guarantor hereby waives
diligence, presentment, demand of payment, filing of claims with a court in
the event of merger or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest or notice with respect to
said Security or indebtedness evidenced thereby, and all demands whatsoever
and covenants that this Guarantee will not be discharged except by complete
performance of the obligations contained in said Security and in this
Guarantee.
The Guarantor shall be subrogated to all rights of the holder of
said Security against the Company in respect of any amounts paid by the
Guarantor pursuant to the provisions of this Guarantee; provided, however,
that the Guarantor shall not, without the consent of the holders of all of
the Securities then outstanding, be entitled to enforce or to receive any
payments arising out of or based upon such right of subrogation until the
principal of and premium, if any, and interest on all Securities shall have
been paid in full or payment thereof shall have been provided for in
accordance with said Indenture.
22
Notwithstanding anything to the contrary contained herein, if
following any payment of principal or interest by the Company on the
Securities to the holders of the Securities it is determined by a final
decision of a court of competent jurisdiction that such payment shall be
avoided by a trustee in bankruptcy (including any debtor-in-possession) as
a preference under 11 U.S.C. Section 547 and such payment is paid by such
holder to such trustee in bankruptcy, then and to the extent of such
repayment, the obligations of the Guarantor hereunder shall remain in full
force and effect.
The obligations of the Guarantor under this Guarantee are, to the
extent provided in the Indenture, subordinate and junior in right of
payment to the prior payment in full of all Senior Indebtedness, and this
Guarantee is issued subject to the provisions of the Indenture with respect
thereto. Each Holder of the Security upon which this Guarantee is
endorsed, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his or her behalf to
take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination so provided and (c) appoints the Trustee his
or her attorney-in-fact for any and all such purposes. Each Holder of the
Security upon which this Guarantee is endorsed, by his or her acceptance
thereof, hereby waives all notice of the acceptance of the subordination
provisions contained herein and in the Indenture by each holder of Senior
Indebtedness, whether now outstanding or hereafter incurred, and waives
reliance by each Holder upon said provisions.
This Guarantee shall not be valid or become obligatory for any
purpose with respect to a Security until the certificate of authentication
on such Security shall have been signed by the Trustee (or the
Authentication Agent).
This Guarantee shall be governed by the laws of the State of New
York.
IN WITNESS WHEREOF, MediaOne Group, Inc. has caused this
Guarantee to be executed.
MediaOne Group, Inc.
[SEAL]
By: By:
--------------------- ------------------------
Name: Name:
Title: Secretary Title:
23
(FORM OF REVERSE OF NOTE)
This Note is one of a duly authorized series of Securities of the
Company (herein sometimes referred to as the "Notes"), specified in the
Indenture, all issued or to be issued in one or more series under and
pursuant to an indenture (the "Base Indenture") dated as of June 12, 1998
among the Company, MediaOne Group, Inc., a Delaware corporation, as
Guarantor (the "Guarantor") and Norwest Bank Minnesota, National
Association, as Trustee (the "Trustee"), as supplemented by the [ ]
Supplemental Indenture dated as of [ ], 199[ ] among the Company, the
Guarantor and the Trustee (the Base Indenture as so supplemented, the
"Indenture"), to which Indenture and all indentures supplemental thereto
reference is hereby made for a description of the rights, limitations of
rights, obligations, duties and immunities thereunder of the Trustee, the
Company and the holders of the Notes. By the terms of the Indenture, the
Notes are issuable in series which may vary as to amount, date of maturity,
rate of interest and in other respects as in the Indenture provided. This
series of Notes is limited in aggregate principal amount as specified in
said [ ] Supplemental Indenture.
Because of the occurrence and continuation of a Special Event,
the Company shall have the right to redeem this Note at the option of the
Company, without premium or penalty, in whole or in part within 90 days of
the occurrence of such Special Event, at a redemption price (the "Special
Event Redemption Price") equal to [ ]% of the principal amount of this
Note plus any accrued and unpaid interest thereon to the date of such
redemption.
The Company shall have the right to redeem this Note at the
option of the Company, without premium or penalty, in whole or in part, on
or after [ ] (an "Optional Redemption"), at a redemption price
(the "Optional Redemption Price") equal to [ ]% of the principal amount
per Note, plus, in each case, accrued and unpaid interest thereon to the
date of redemption for the Notes.
Any redemption will be made upon not less than 30 days nor more
than 60 days notice before the redemption date, at the Redemption Price.
If the Notes are only partially redeemed by the Company, the Notes will be
redeemed PRO RATA or by lot or by any other method utilized by the Trustee;
provided that if, at the time of redemption, the Notes are registered as a
Global Note, the Depositary shall determine the principal amount of such
Notes held by each Noteholder to be redeemed in accordance with its
procedures.
In the event of redemption of this Note in part only, a new Note
or Notes of this series for the unredeemed portion
24
hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.
In case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all of the Notes may be
declared, and upon such declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the
Indenture.
The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the Holders of not less than a majority in
aggregate principal amount of the Notes of each series affected at the time
outstanding, as defined in the Indenture, to execute supplemental
indentures for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or of modifying in any manner the rights of the
Holders of the Notes; PROVIDED, HOWEVER, that no such supplemental
indenture shall (i) extend the fixed maturity of any Notes of any series,
or reduce the principal amount thereof, or reduce the rate or extend the
time of payment of interest thereon, or reduce any premium payable upon the
redemption thereof, without the consent of the Holder of each Note so
affected or (ii) reduce the aforesaid percentage of Notes, the Holders of
which are required to consent to any such supplemental indenture, without
the consent of the Holders of each Note then outstanding and affected
thereby. The Indenture also contains provisions permitting the Holders of
a majority in aggregate principal amount of the Notes of any series at the
time outstanding affected thereby, on behalf of all of the Holders of the
Notes of such series, to waive any past default in the performance of any
of the covenants contained in the Indenture, or established pursuant to the
Indenture with respect to such series, and its consequences, except a
default in the payment of the principal of or premium, if any, or interest
on any of the Notes of such series and except as provided in Section 4.06
of the Base Indenture. Any such consent or waiver by the registered Holder
of this Note (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such Holder and upon all future Holders and
owners of this Note and of any Note issued in exchange herefor or in place
hereof (whether by registration of transfer or otherwise), irrespective of
whether or not any notation of such consent or waiver is made upon this
Note.
No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and premium, if any,
and interest on this Note at the time and place and at the rate and in the
money herein prescribed.
25
The Company shall have the right at any time during the term of the
Notes from time to time to extend the interest payment period of such Notes
to up to [ ] consecutive [ ] periods (an "Extended Interest
Payment Period"), at the end of which period the Company shall pay all
interest then accrued and unpaid (together with interest thereon at the
rate specified for the Notes to the extent that payment of such interest is
enforceable under applicable law). Before the termination of any such
Extended Interest Payment Period, the Company may further extend such
Extended Interest Payment Period, PROVIDED that such Extended Interest
Payment Period together with all such further extensions thereof shall not
exceed [ ] consecutive [ ] periods. At the termination of any
such Extended Interest Payment Period and upon the payment of all accrued
and unpaid interest and any additional amounts then due, the Company may
select a new Extended Interest Payment Period.
As provided in the Indenture and subject to certain limitations
therein set forth, this Note is transferable by the registered holder
hereof on the Security Register of the Company, upon surrender of this Note
for registration of transfer at the office or agency of the Company in the
borough of Manhattan, the City and State of New York accompanied by a
written instrument or instruments of transfer in form satisfactory to the
Company or the Trustee duly executed by the registered holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Notes of
authorized denominations and for the same aggregate principal amount and
series will be issued to the designated transferee or transferees. No
service charge will be made for any such transfer, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in relation thereto.
Prior to due presentment for registration of transfer of this Note,
the Company, the Trustee, any paying agent and any Security Registrar may
deem and treat the registered holder hereof as the absolute owner hereof
(whether or not this Note shall be overdue and notwithstanding any notice
of ownership or writing hereon made by anyone other than the Security
Registrar) for the purpose of receiving payment of or on account of the
principal hereof and premium, if any, and interest due hereon and for all
other purposes, and neither the Company nor the Trustee nor any paying
agent nor any Note Registrar shall be affected by any notice to the
contrary.
No recourse shall be had for the payment of the principal of or the
interest on this Note, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture, against any
incorporator, stockholder, officer or director, past, present or future, as
such, of the Company or of any predecessor or successor corporation,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement
26
of any assessment or penalty or otherwise, all such liability being, by the
acceptance hereof and as part of the consideration for the issuance hereof,
expressly waived and released.
[The debentures of this series are issuable only in registered form
without coupons in denominations of $[ ] and any integral multiple
thereof.] [This Global Note is exchangeable for Notes in definitive form
only under certain limited circumstances set forth in the Indenture. Notes
of this series so issued are issuable only in registered form without
coupons in denominations of $[ ] and any integral multiple thereof.]
As provided in the Indenture and subject to certain limitations [herein
and] therein set forth, Notes of this series [so issued] are exchangeable
for a like aggregate principal amount of Notes of this series of a
different authorized denomination, as requested by the Holder surrendering
the same.
All terms used in this Note which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
ARTICLE IX
ORIGINAL ISSUE OF NOTES AND GUARANTEES
SECTION 9.1 ORIGINAL ISSUE OF NOTES AND GUARANTEES
Upon execution of this [ ] Supplemental Indenture, Notes in
the aggregate principal amount of $[ ] may be executed by the
Company and Note Guarantees endorsed thereon executed by the Guarantor.
Such Notes and Note Guarantees endorsed thereon may be delivered to the
Trustee for authentication, and the Trustee shall thereupon authenticate
and deliver said Notes to or upon the written order of the Company, signed
by its President or any Vice President and its Secretary or an Assistant
Secretary, without any further action by the Company.
ARTICLE X
MISCELLANEOUS
SECTION 10.1 RATIFICATION OF INDENTURE
The Indenture, as supplemented by this [ ] Supplemental
Indenture, is in all respects ratified and confirmed, and this [ ]
Supplemental Indenture shall be deemed part of the Indenture in the manner
and to the extent herein and therein provided. The provisions of this [
] Supplemental Indenture shall supersede the provisions of the Indenture
to the extent the Indenture is inconsistent herewith.
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SECTION 10.2 TRUSTEE NOT RESPONSIBLE FOR RECITALS
The recitals herein contained are made by the Company and not by
the Trustee, and the Trustee assumes no responsibility for the correctness
thereof. The Trustee makes no representation as to the validity or
sufficiency of this [ ] Supplemental Indenture.
SECTION 10.3 GOVERNING LAW
This [ ] Supplemental Indenture and each Note shall be
deemed to be a contract made under the internal laws of the State of New
York, and for all purposes shall be construed in accordance with the laws
of said State.
SECTION 10.4 SEPARABILITY
In case any one or more of the provisions contained in this [ ]
Supplemental Indenture or in the Notes shall for any reason be held to
be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of
this [ ] Supplemental Indenture or of the Notes, but this [ ]
Supplemental Indenture and the Notes shall be construed as if such invalid
or illegal or unenforceable provision had never been contained herein or
therein.
SECTION 10.5 COUNTERPARTS
This [ ] Supplemental Indenture may be executed in any
number of counterparts each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this [ ]
Supplemental Indenture to be duly executed as of the day and year first
above written.
MEDIAONE GROUP FUNDING, INC.
By:
------------------------------
Name:
Title:
MEDIAONE GROUP, INC.
By:
------------------------------
Name:
Title:
NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION,
as Trustee
By:
------------------------------
Name:
Title:
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